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Customer Loyalty Factors Of Small Scale Farmers In Purchasing Poultry Feed SUCI PARAMITASARI SYAHLANI Faculty Of Animal Science Gadjahmada University, Jl Fauna no3, Bulaksumur, Yogyakarta 55281 Yogyakarta INDONESIA [email protected] ANTON AGUS SETYAWAN Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Surakarta, Jl A Yani Tromol Pos 1 Pabelan Kartasura, Sukoharjo INDONESIA [email protected] MUJTAHIDAH ANGGRIANI Faculty Of Animal Science Gadjahmada University, Jl Fauna no3, Bulaksumur, Yogyakarta 55281 Yogyakarta INDONESIA UMMUL MUZAYYANAH Faculty Of Animal Science Gadjahmada University, Jl Fauna no3, Bulaksumur, Yogyakarta 55281 Yogyakarta INDONESIA Abstract: This study aims for factors that affect customer loyalty in business to business poultry industry, specifically in the relationship between feed manufacturersand small scale chicken farming enterprises. There are great differentiatingcharacteristics between those two. Buyers consist of a large number of farmers that operatesmall scale enterprises, inheritingbusinesses for generations, and have limited knowledge of technical and business environments. While suppliers consist of few, butlarge and integrated firms with greaterbusiness advantages. This study used survey design to identify effects of customer perceived value, customer satisfaction,and customer trust toward supplier andcustomer loyalties. This research involved 131 small chicken farming enterprises in Special Province of Yogyakartaas respondents. Data analyses were conducted by structural equation model. The resut revealedthat costumer perceived value influencedcustomer satisfaction and customer trust toward supplier. However, this study showed that customer satisfaction did not affect customer loyalty. Customer loyalty was only affected by costumer trust. WSEAS TRANSACTIONS on BUSINESS and ECONOMICS Suci Paramitasari Syahlani, Anton Agus Setyawan, Mujtahidah Anggriani, Ummul Muzayyanah E-ISSN: 2224-2899 379 Volume 16, 2019

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Page 1: Customer Loyalty Factors Of Small Scale Farmers In ...€¦ · Customer Loyalty Factors Of Small Scale Farmers In Purchasing Poultry Feed SUCI PARAMITASARI SYAHLANI Faculty Of Animal

Customer Loyalty Factors Of Small Scale Farmers In Purchasing

Poultry Feed SUCI PARAMITASARI SYAHLANI

Faculty Of Animal Science Gadjahmada University, Jl Fauna no3, Bulaksumur, Yogyakarta 55281 Yogyakarta

INDONESIA [email protected]

ANTON AGUS SETYAWAN Fakultas Ekonomi dan Bisnis

Universitas Muhammadiyah Surakarta, Jl A Yani Tromol Pos 1 Pabelan Kartasura, Sukoharjo INDONESIA

[email protected]

MUJTAHIDAH ANGGRIANI

Faculty Of Animal Science Gadjahmada University, Jl Fauna no3, Bulaksumur, Yogyakarta 55281 Yogyakarta

INDONESIA

UMMUL MUZAYYANAH

Faculty Of Animal Science Gadjahmada University, Jl Fauna no3, Bulaksumur, Yogyakarta 55281 Yogyakarta

INDONESIA

Abstract: This study aims for factors that affect customer loyalty in business to business poultry industry, specifically in the relationship between feed manufacturersand small scale chicken farming enterprises. There are great differentiatingcharacteristics between those two. Buyers consist of a large number of farmers that operatesmall scale enterprises, inheritingbusinesses for generations, and have limited knowledge of technical and business environments. While suppliers consist of few, butlarge and integrated firms with greaterbusiness advantages. This study used survey design to identify effects of customer perceived value, customer satisfaction,and customer trust toward supplier andcustomer loyalties. This research involved 131 small chicken farming enterprises in Special Province of Yogyakartaas respondents. Data analyses were conducted by structural equation model. The resut revealedthat costumer perceived value influencedcustomer satisfaction and customer trust toward supplier. However, this study showed that customer satisfaction did not affect customer loyalty. Customer loyalty was only affected by costumer trust.

WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

Mujtahidah Anggriani, Ummul Muzayyanah

E-ISSN: 2224-2899 379 Volume 16, 2019

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Key-words: Customer Satisfaction, Small Scale Farmers, Feed Supplies, Loyalty. 1 INTRODUCTION

Business-to-businessmarket has been known as an attractive market. Even though, the number of customers is fewer, but they make purchasesat large scale, impacting revenue security of companies involved. The availabilityof suppliers offering similar products or servicesmade business customersdemanded more services and supportsfrom them(Naryandas, 2005). Therefore, it is critical for suppliers to understand the needs and wantsof their customers to increasecompany capability to maintain relationships and satisfactions to ultimately achieve customer loyalty.

Customer relationship management is one the most common practice in business-to-business industries to earncustomer loyalty. Parvitiyar and Sheth(2001) defined customer relationship managementas “a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers to createsuperior value for the company and the customer”. Superior value would benefit both parties as it is the result ofpositive cooperative and collaborative works between buyer and seller. Moreover, it would improve marketing efficiency and buyer productivity. Customers can alsoact proactively in business development to aid buyer in fulfilling the needs.

The issue of creating intimate relationship between buyer and sellerbecome more essential in business-to-business market,since often market structures consisted of few but larger buyers. Managerswho are working in this market placecustomer loyalty higher in priority, because theyunderstandtheprofitimpact that flows from customer retention or another psychological equivalent to loyalty (Harris and Goode, 2004; Oliver, 2014). The reason is simply that loyal

customers buy more, are willing to spend more, easier to reach, and act as enthusiastic advocates for involved firms.Previous study showedhow companies reach customer loyaltyby emphasising greater attention to some attitudinal antecedents. The relative impact of antecedents may vary in different market type. When cognitive and conative antecedents are within point of parity of the industry,then affective antecedent like satisfaction might play as key determinant that influence customer loyalty (Dick and Basu, 1994).Trust is another affective antecedent that emerges as sellers perceive competence operationally to fulfil the needs of buyers that would reduce risks in exchange and increase congruent values between buyers and sellers (Sirdeshmukh et al., 2002).

Does it work universal in all industries? Dissimilarities of market structure, bargaining power would shape different forms of relationship between suppliersand customers. A limited number of large-scale feed manufacturer operations as well as their chain management system allows more bargaining power on suppplier especially to customer thats potentially cause imbalanced relationship management in poultry industry. In Indonesia, chicken farmers mostly aresmall enterprises.These farmers are categorized in sector 2 as a group of poultry growers that apply commercial poultry production system with moderate to high biosecurity and marketing their products commercially, counting up to 37.707 farmers (Rushton et al., 2005).Average numbers of birds are 528 individuals which indicated their operation scales are far below ideal operational scale of their enterprises than firms that supply feed materials. This great difference of operational scale naturally raises a power imbalance that would affect business

WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

Mujtahidah Anggriani, Ummul Muzayyanah

E-ISSN: 2224-2899 380 Volume 16, 2019

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relationships. In fact, this is not an isolated issues within developing countries, but a widespread one occurring even in contracting system of poultry industry in USA, as an example. In most poultry industries, contract terms are notcommonly specifying terms of quantity and product. Moreover, service qualityand price are not negotiated andthe grower must accept the contract offered by manufacturer, regardless (Taylor and Domina, 2010).Setyawan et al (2019) found similar picture in Indonesia retail idustry, there is an asymmetry information in business relationship between large companies and SME retailers. Large companies have power in determining business rules, eventhough it has a positive effect to SME retailers business performance.Morgan and Hunt (1994) proposed key mediating variables in business relationship in B2B, those are trust and commitment which appear in the process of business between parties. Therefore, there is a need to evaluate how variables of customer relationship management work in business-to-business market of poultry industry, espescially ones that involved small medium enterprises. Are customer perceived value, satisfaction toward supplier,and customer trust influence customer loyalty?

2 LITERATURE REVIEW 2.1 Perceived Value, Satisfaction, and Trust in Business-to-Business Market

An important determinant that is helpful to advance firm understanding in business relationships is the concept of value (Anderson, Jain, and Chintagunta, 1993), as delivering superior value of product and service means that company would be able to generate customer loyalty (Parasuraman and Grewal, 2000).The root of perceived value is in equity concept referring to what is fair, right, or

deserved for the perceived cost of the offering (Bolton & Lemon, 1999). Customers are felt equitably treated or satisfied if they perceive the ratio of their outcome to inputs is comparable to the ratio of outcome to inputs experienced by the company (Oliver &DeSarbo, 1988). Yang and Peterson (2000) mentioned that customer satisfaction is a mediating variable in linking customer-perceived value and loyalty. This implies that value is important in marketing relationship.

Business-to-business market has different aspect in perceived value compare to consumer market. Consumer and producer in B2B market are involved in a close relationship. There are several aspects crucial inmaintaining business relationship such as supplying chain facilities, global competition, information technology infrastructure and performance, information visibility, top management support and commitment, government encouragement and commitment, security and trust, and cultural consideration (Chong et al., 2011). However, perceived value of each company to their partners is an important aspect to consider prior to building a business relationship (Albadvi and Hoesseini, 2011).

Perceived value is a comparison between perceived benefit and perceived sacrifice (Ravald and Gronroos, 1996). Perceived sacrifice includes all costs buyer paid when making the purchase, in the case of business-to-business market; purchase price, transportation cost, installation cost, carrying cost, and delivery cost. Perceived benefits are all attributes of products and services attributes which includes technical support that has been received by the buyer. In the business relationship of several companies, perceived values are of importance within a transaction between them. Arefi (2010) shows that reliability as one aspect of perceived value is the most important driver to influence customer

WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

Mujtahidah Anggriani, Ummul Muzayyanah

E-ISSN: 2224-2899 381 Volume 16, 2019

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satisfaction in business to business market, for all functional areas. It is reasonable, since the lack of reliability may affect the business process, such is down time. Furthermore, it is explained that employee from different functional areas may give different weight to different properties of values. Ravald and Gronroos (1996) explainesthat perceived value will affect trust and also indirectly influence loyalty in long term, through the achievement trust and customer satisfaction.

Rufin and Molina (2015) found that trust is a significant aspect of long term business relationship. Trust represents willingness of each parties in business relationship to think and act on behalf of their partner’s interests (Shaikh et al., 2017). In business relationship, considering a partner’s interest in a business decision should be a part of business strategy. Trust is an abstract concept that is positively attributed and vital for humanity, since meaningful relationships often depend on it. In marketing, trust has been used to forge relationships between buyers and sellers (Wang and Emurian, 2005). Trust as a part of relational attribute has been linkedto direct repurchasing decisions(Hennig-Thurau and Klee 1997; Sirdeshmukh et al. 2002). Trust along with developments of information technology will reduce transaction costs because it encourages commitments of long-term relationships between suppliers and consumers (Jumaef et al., 2012). As with willingness to rely on business partners, trust had assumed an essential role in establishing and maintaining a long-term relationshipbetween sellers and buyers.

A satisfaction or positive post-transactional response occurs when there is a match between product and service performed and customer expectation. When it happens, it directs to repeat a patronage buying behaviour.A number of literature indicate satisfaction plays a major role in shaping loyalty(Bennett et al., 2005; Fiol et al.,

2009).Achieving satisfaction indicates the ability of marketers to build customer relationship management. Satisfaction itself can be reached by effectively focusing on consumer preferences and desired valuez to form a long-term commitment. It can reach out through readiness to modifyproducts such as technical updates related to productionand servicesneeds, such as onsite inspection, inventory that is provided by industrial vendor as well as managing personal relationship to strengthen customer loyalty.

Terawatanavong et al.,(2007) found that satisfaction, trust, and commitment are related with the quality of business relationship in business-to-business market. Satisfaction is the result of fulfilling a partner’s obligation and promises in a business relationship, especially in transactions between partners (Rocco and Bush, 2016). Companies in a business relationship have certain expectations of their partner’s perceived value. If this expectation is met, then satisfaction will take place. Satisfaction has different role in relationship marketing research. Satisfaction is key variable in business relationship which mediated perceived value and power with business performance (Terawatanavong,2007). Another study showed that satisfaction could be the result of good business relationship. (Ramaseshan et al, 2006). H1: Customer perceived value affects positively customer satisfaction toward suppliers H2: Customer perceived value has positive effect on customer trust 2.2 Loyalty with Partners in Business Relationship Rayruen and Miller (2007) proposed a model that includes satisfaction, trust, and perceived service quality as dimensions of relationship quality affecting customer loyalty. The result showed that

WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

Mujtahidah Anggriani, Ummul Muzayyanah

E-ISSN: 2224-2899 382 Volume 16, 2019

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perceived quality and satisfaction gave positive effect on loyalty, however trust does not show similar effect on dependence factor. Loyalty in B2B relates with keeping similar business partners without intentions to terminate business relationships. Rayruen and Miller (2007) also suggested that loyalty of companies in B2B also give recommendation to other companies in building business partnership with their partners.

Gronroos (2017) suggested that in B2B context relationship marketing concept should be applied to analyse the quality of business relationship. The process of business relationship should be identified based on the importance of that relationship to each parties. Relationship quality, which includes value, satisfaction, and process are relationship marketing processes, while loyalty and business performance are the result (Rayruen and Miller, 2007; Ramaseshan et al., 2006). In B2B marketing, loyalty is earned when customers considereconomic benefit as a result of business relationship. Loyalty in B2B tends to be attitudinal, since it related with commitment to purchase, and expectation to repurchase, or behavioural loyalty (Bennet et al., 2005). Cassia and Magno (2012) found that attitudinal loyalty in B2B marketing affected by product knowledge and experience of customer. Customer commitment to maintain business relationship is determined by customer satisfaction and trust (Espejel et al., 2011). Furthermore Sanchez et al., (2012) found that value creation and partner’s satisfaction to business relationship gave positive effect to partner’s loyalty within their business relationship. H3: Customer satisfaction towardsupplier positively affects customer loyalty H4: Customer trust has positive effecton customer loyalty

3 RESEARCH METHODS This research was carried out by survey design in poultry industry.Population studiedissmall scale enterprises of poultry growers in Special Province of Yogyakarta. Judgmental sampling method was used to determine research sample with the following criterias; respondents are poultry growers in small operational scale that has been running forat least 2 years. Thereforem it can be assumed that they have acquired sufficient information about alternatives in choosing suppliers and raw material suppliers, in this case, animal feed.Respondents had freedom to chooseand switch the feed suppliers. Respondents are also the decision makers in purchasing.

Data were collected by filling out questionnaires to obtain information about farms they managed. Development of a questionnaire refers to the scale of measurement from earlier researches conducted by Fiol (2009),Vazquez and Sanzo (2011), and Doma (2013). Questionnaires wereadjusted to poultry industrial context. Validity was analyzed by Confirmatory Factor Analysis and reliability by using Cronbach Alpha test. Hypothesis testing was analyzed by using Path Analysis with AMOS software. 4 RESULT AND DISCUSSION 4.1 Poultry enterprise profile 72,5% respondentsinvolved in this study were broiler growersand all of them were under contractual poultry grower scheme with integrator companieswhile the 27.5% wereindependent enterprises of laying hen growers.Incontract scheme,poultry growers are obliged to purchase feed frompartner companies. However, those poultry growers were free to choose companies to cooperate with and the contract was in short period. Therefore, farmers could switch rather flexibly to other partners,

WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

Mujtahidah Anggriani, Ummul Muzayyanah

E-ISSN: 2224-2899 383 Volume 16, 2019

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while independent farmers are free to choose input feed brands. Based on the number of workers, allrespondents were small enterprises, since the number of permanent and contract workers were less than 20. Permanent workers were assigned to carry out operational routines, while non-permanentworkers were involvedduring harvest and cage maintenances. The result also showed that

79.4% poultry farmers rely on onefeed supplier while20.7%buy from more than one feed suppliers.

4.2 Measurement test Table 2 shows result of validity and reliability of constructs in this study and that all measurement in this study fulfilled minimum requirement factor loadings for construct validity and Cronbach Alpha for minimum reliability.

Table.1Poultry enterprises profile Characteristic Number Proportion (%) Poultry growertype Broiler Laying hens

95 36

72.5 27.5

Type of enterprise Contractual poultry grower Independent poultry grower

95 36

72.5 27.5

Number of permanent employee 1-3 ≥ 4

117 14

89.3 10.7

Number of non-permanent employee 1-3 ≥4

88 41

67.2 32.3

Number of chicken feed supplier 1 2

104 27

79.3 20.7

WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

Mujtahidah Anggriani, Ummul Muzayyanah

E-ISSN: 2224-2899 384 Volume 16, 2019

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Table 2. Validity and Reliability of Constructs Indicators Cronbach

Alpha Factor Loadings

1 2 3 4 Perceived Value Durability value Technical quality Technical competence Reliability Security Firm’s employee

0.7738 0.739 0.439 0.621 0.527 0.338 0.737

Trust Supplier’s integrity Strong relationship with suppliers. Supplier’s reputation. Supplier’s trustworthy Consistency of providing service. Supplier’s reliability. Supplier’s support. Supplier emphasizes on our interest. Company’s control over suppliers. Supplier keep our business confidential. Supplier fulfilling their promises.

0.8390

0.437 0.541 0.653 0.511 0.706 0.511 0.750 0.414 0.701 0.865 0.525

Satisfaction Supplier fulfilling our expectation. Handling complaint in a goodmanner. Supplier’s employee workprofessional. Supplier’s ability to fulfill our needs. Supplier build longterm relationship. Supplier’s competence. Good business relationship.

0.8398

0.809 0.376 0.451 0.733 0.633 0.552 0.566

Loyalty Continuing longterm relationship Gives refference to others. Willingness to pay more Our company will defend our supplier. Enjoying business relationship Forgive supplier’s mistakes. Longterm investment for supplier.

0.6637

0.716 0.692 0.679 0.694 0.697 0.807 0.693

WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

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E-ISSN: 2224-2899 385 Volume 16, 2019

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4.3 Hypothesis testing

Hypothesis testing consisted of two stages: a goodness fit of model and parameter estimatestest to

confirm the research model to assess the data obtained (Hair et al., 2000). Figure 1 shows result of path analysis in this study.

Figure 1. Model Estimation of Loyalty in Poultry Industry 4.4 Goodness Fit of Model Testing This research model is a basic one, therefore the suitability of the model fit was determined by the specified absolute value of the indicator of chi-square (ᵡ2 or CMIN), normed chi-square (ᵡ2 / df or CMIN /

DF) , GFI (Goodness Fit Index), RMR (root mean square residual) and RMSEA (root mean square of approximation). Comparison of the results of the model fit and the recommended values to determine the feasibility of the model are listed in Table 3.

Table3. Absolut parameter indicators of the research model fitness

Index of model fitness Recommended index of model fitness

Result Remarks

Absolute Fit chi-square (ᵡ2 or CMIN) Relatively low 1.893 Good Normed chi square ≤ 5.00 1,868 Good GFI >0.90 0,993 Good RMR <0.05 0,004 Good RMSEA <0.07 0,083 Poor

Customer

Perceived Value

Customer Trust

Customer Satisfaction

toward Supplier

Customer Loyalty

0.783

n.s 0.711

0.265

WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

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Table4. Estimation Parameter Test Hipotesis Estimation

parameter value

Critical Ratio

Remarks

H1: Customer perceive value has positive effect to satisfaction toward suppliers

0.711 11.529 Significant

H2: Perceive value has positive effect to trust toward suppliers.

0.783 14.348 Significant

H3: Customer satisfactiontowardsupplier positively affect loyalty toward suppliers

0.166 1.283 Not significant

H4: Customer trust positive effecton customer loyalty

0.265 2.042 Significant

4.5 Discussions The result of the analysis showed that customer perceived value plays an important role in shaping customer satisfaction toward suppliers(Oliver 1999; Spiteri and Dion 2004). Perceived value of the functional, social, and emotional benefits derived from a product. Therefore, consumers of the benefits of the acquisition will have their needs fulfilled in order to provide satisfaction. This relationship is consistent with the study conducted by Arefiet al. (2010) which showed three factors relating to thesource of customer satisfaction in the context of B2B; reliability, information about products, and commercial attributes. Those factors are the aspect of perceived value that used in this study.

However, customer satisfaction itself does not affectcustomer loyalty. It reflects that within this research setting, customer loyalty is not directly resulted from customer satisfaction. Kim (1998) and Rai and Medha (2013) found that customer satisfaction could result in loyalty within B2C businesses, however in B2B

relationships, economic benefit is a crucial consideration of loyalty.The supplier’s core presentof satistifaction in feed industry, that is, goodmanner,professionalim and competence at last tend to be commoditized the offering. However, customer satisfaction earned would result in customers with fidelity (Jones and Sasser, 1995). Relationship satisfaction and loyalty is a nonlinear relationship (Mittal and Kamakura, 2001) due to different intensities of satisfaction at one time, the situation, and the needs on different levels.

In other hand, trust gavepositive effect on loyalty to the suppliers. This results are consistent with research conducted by Morgant and Hunt (1994) and Jumaef et al. (2012) showing that high trust committed encouraged long-term relationships between suppliers and consumers, by an example, reduction of transaction costs. High trust and support by developments of information technology enables significant decline in transaction costs for both suppliers and consumers. Current information technology among poultry growers and feed manufactures is conducted either by smart phoneand

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similarly functioning devices so that it is possible for suppliers and the customers to make contact easily. It can also be a useful facility if consumers have high confidence in the supplier. Reordering or requesting other services (livestock inspection facilities, farm visits, etcetera) can easily be carried out by consumers to suppliers, for example, billing information, information subsidies or price increases, and anything related. Trust is a critical key and central factor during exchange between customers and suppliers to create loyal commitment (Doney and Abratt, 2012).

5 CONCLUSIONS

It can be concluded that customer perceived value has positive effect on satisfaction and customer trust toward supplier.Each party involved in business relationships have good knowledge about product value. Farmers received information and product knowledge from the supplier as well as training and assistance in order to obtain optimum results.Specifically in contractual scheme, both partiesbelieve that there is a risk sharing between poultry farmers and integrators. Risk sharing between poultry farmers and integrators is related to market security, asintegrators buy allfarmers’s output according to the contract price. This is the reason why trust emerged within business relationships.

Satifaction is not supported to become antecedent of loyalty. Satisfaction in business-to-business marketing do not always result in loyalty. This is due to loyalty in business-to-business related with economic calculation of companies involvedwithin business relationships. Even though a company may be satisfied with their partner’s service, they could change business partner if they can attain products similar quality of service at lower price.Feed producers should implement price strategy integrated

with excellent service to maintain their business relationship with poultry farmers.

This study gives important contribution to relationship marketing to strengthen position of trust as an important mediating variable. This study was carried out from customer side to analyze relationships between buyers and sellers. It may have limitations and would be more comprehensive when including all point of views. We suggest for further research using dyadic model of business relationship in poultry industry of Indonesia

This study also described phenomena of poultry industry in Indonesia. Large companies hold strategic keys in the industry, since they possess final stock of day-old-chicks and feed distribution. It isimplied that feed companies in Indonesia lead business relationship, since they are operating in oligopolistic market and have stronger bargaining position over poultry farmers. These are the reason poultry companies in Indonesia have moderate control over price and distribution of all chicken products. References: [1] Albadvi, Amir and Monireh Hosseini. 2011,

Mapping B2B value exchange in marketing relationships: a systematic approach, Journal of Business & Industrial Marketing, Vol 26, No 7, pp 503–513.https://doi.org/10.1108/08858621111162307

[2] Anderson, James C., Dipak C. Jam, Pradeep K. Chintagunta.1993, Customer value assessmentin business markets:a state-of-practice study,Journal of Business-to-Business Marketing, Vol. 1, No 1, pp 3-29.https://doi.org/10.1300/J033v01n01_02

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WSEAS TRANSACTIONS on BUSINESS and ECONOMICSSuci Paramitasari Syahlani, Anton Agus Setyawan,

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[8] Dick, Alan S., and BasuKunal. 1994. Customer loyalty: toward an integrated conceptual framework, Journal of the Academy of Marketing Science, Vol 22, 99-113.https://doi.org/10.1177/0092070394222001

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[10] Espejel, Joel., Carmina Fandos and Carlos Flavian. 2011, Antecedents of consumer commitment to a PDO wine, an empirical analysis of spanish consumers. Journal of Wine, Vol22, No 3, pp 205-225.

[11] Fiol, Luis. J. C., Enrique B. Alcaniz, Miguel A. M. Tena, and Javier S. Garcia, 2009, Customer loyalty in clusters: perceived value and satisfaction as antecedents.Journal of Business to Business MarketingVol 16, pp 276-316.https://doi.org/10.1080/10517120802496878

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[16] Doney, Patricia A., James M Barry and Russel

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